New Delhi: The Delhi High Court is set to announce its decision today on a plea filed by the Congress party regarding a tax dispute. The Congress had challenged a ruling by the Income Tax Appellate Tribunal (ITAT), which had refused to halt a notice issued by the Income Tax department demanding payment of over Rs 100 crore in outstanding taxes.

A bench comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav will deliver the verdict at 2:15 pm, following hearings from both the Congress and the Income Tax department.

The Congress moved to the high court after the ITAT, on March 8, rejected the party's request to suspend the February 13 notice from the Income Tax department initiating recovery proceedings.

The tax demand, exceeding Rs 100 crore, was issued for the assessment year 2018-19, based on an assessed income of over Rs 199 crore.

During proceedings, the Congress' counsel emphasized the urgency of protection for the party, indicating potential collapse if relief wasn't granted. They highlighted the imminent Lok Sabha elections and the freeze on the party's bank accounts.

Responding to the arguments, the bench expressed dissatisfaction with the handling of the matter by the Congress, noting that despite the demand being raised in 2021, no action was taken. They remarked that waking up to the issue only after a notice in February wouldn't alter the situation.

The Income Tax department's representative informed the court that despite the option given to the Congress to pay 20% of the demand in 2021, no action was taken. Consequently, the entire amount became recoverable.

The original tax demand of Rs 102 crore, with added interest, amounted to Rs 135.06 crore, out of which Rs 65.94 crore has been recovered thus far.

In their defense before the ITAT, the Congress argued that the timing of the recovery proceedings, initiated on February 13, was strategic to leave the party with inadequate resources to contest the parliamentary elections. However, the tribunal dismissed the stay application, finding no lack of bona fides in the tax recovery notice.

Previously, the Congress had denounced the IT tribunal's freezing of its funds as an "attack on democracy," particularly given its proximity to the Lok Sabha elections.

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